Decision on place of establishment

An entity that is actually established here qualifies for a decision on its place of establishment if:

1. The entity has an annual turnover of no more than USD 80,000 and the assets usually amount to no more than USD 200,000 and the entity is not involved in:

• financial services;
• royalty payments;
• insurance and re-insurance activities;
• the managing of companies that are actually or statutorily established in the BES;
• services related to trust operations.

2. The assets of the entity usually consist for no more than 50% of:

• investments;
• participating interests;
• liquidities;
• assets which use or right of use are provided to persons residing or established outside of the BES;
• other assets used to directly or indirectly finance persons residing or established outside of the BES.

3. The entity employs three or more persons residing on the BES islands. These persons have a full-time and permanent employment relationship and are involved in the work related to the assets listed in 2. The powers and responsibilities of these persons are in line with the nature of and position of this work. The entity also has access to an immovable property located on the BES islands with a value of at least USD 50,000 for at least 24 months. This building must have been furnished with the facilities common for the activities performed by the entity established on the BES islands.

An additional exception is made for:

• Entities permitted into a trade and service warehouse as defined in Chapter V of the BES Customs and Excise Duties Act.

Entities in the possession of a decision of the inspector which determines that the entity participates for 95% (for example, holds 95% of the shares) in an entity which:

• is permitted into a trade and service warehouse as defined in Chapter V of the BES Customs and Excise Duties Act
• is in the possession of a decision on its place of establishment (so-called holding firm)

Attention! From the 1^st of January, 2024 the law is changing and the 95% decision expires. Instead, a new type of decision is introduced, i.e. the 50% decision. This decision can be requested if the entity has a 50% participating interest in another entity that:
 

• is admitted to a trade and services warehouse as intended in Chapter V of the Douane- en Accijnswet BES;
• is in possession of an establishment decision (so-called holding companies).

Moreover, the asset test, as intended under point 2 (see above), must be met. 

The 95% decision will expire. If the entity is in possession of this kind of decision then it must assess as to whether the entity complies with the new conditions for a 50% decision.

If the entity is already in possession of a 95% decision and the new conditions for a 50% decision are met effective from the 1^st of January, 2024 then you do not need to take action. The 95% decision is then converted into a 50% decision. You do not receive a separate message about this.

If the entity does not comply with the new conditions effective from the 1^st of January, 2024 then contact the Inspector. If a further assessment shows that the entity does not qualify for a 50% decision, then the entity may fall under the corporation and the dividendbelasting in the European Netherlands. As the occasion arises, a final settlement may need to take place for the opbrengstbelasting.